United Parcel Service (UPS) is boosting its healthcare logistics capabilities in Europe with the acquisition of Frigo-Trans and its sister company BPL. The deal will strengthen UPS’ end-to-end capabilities in the region, particularly for temperature-controlled and time-sensitive shipments within the healthcare sector.
Frigo-Trans offers a comprehensive network of temperature-sensitive warehousing facilities covering six temperature zones, ranging from cryopreservation (-196°C) to ambient (+15° to +25°C). Additionally, it provides Pan-European cold chain transportation solutions.
It should be noted that the financial terms of the deal remain undisclosed. Moreover, the acquisition is anticipated to close in the first quarter of 2025.
UPS Expands Healthcare Logistics to Meet Rising Demand
The acquisition aligns with UPS’s broader expansion into the healthcare logistics sector, which is experiencing significant growth. It is worth highlighting that the company anticipates doubling its healthcare logistics revenue from $10 billion in 2023 to $20 billion by 2026.
Kate Gutmann, EVP and President of International, Healthcare, and Supply Chain Solutions at UPS, pointed to the rising need for integrated cold and frozen supply chains due to rapid growth in the pharmaceutical industry.
This has created a rising demand for specialized logistics solutions to manage temperature-sensitive products such as vaccines, pharmaceuticals, and medical supplies.
Is It Good to Buy UPS Stock?
Turning to Wall Street, UPS has a Moderate Buy consensus rating based on eight Buys, 10 Holds, and one Sell assigned in the last three months. At $144.65, the average UPS price target implies 11.41% upside potential. Shares of the company have declined about 15% in the last six months.
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